Hysan Moves To Secure Sites For Major Commercial Project
HONG KONG – Hysan Development, one of the biggest commercial property landlords in Central, has recently purchased a unit in an ageing building adjacent to its Leighton Centre building, paving the way to build a HK$7.5 billion office and retail development in Hong Kong’s busiest shopping district, reported Mingtiandi on Sunday evening (20 March, SGT).
Earlier this month, a buyer connected to the property company bought a 2nd-floor unit in 9A Sharp Street East for HK$24.28 million to open the path for the compulsory acquisition of the 66-year-old structure. In 2020, the same buyer applied for a compulsory purchase of 9A and 9B Sharp Street East and it currently owns 83.3 percent of the site.
Should Hysan succeed in consolidating the site and amalgamating it with 6 adjacent properties it is reportedly buying in the vicinity, Hysan could add 216,000 sq ft of floor area to its real estate portfolio, revealed Alex Leung, Senior Director at surveying company CHFT Advisory and Appraisal.
When the commercial property landlord applied for a compulsory sale of Sharp Street East 2 years ago, 3 other compulsory sale applications for neighbouring sites were lodged by unnamed parties, which sources also linked to Hysan. The adjacent properties, which are situated at 5 Sharp Street East, 10-12 Matheson Street, and 16 Matheson Street, were at least 83.3 percent-owned by their applicants back then.
Last April, the property at 5 Sharp Street East was the first of the 4 sites to be purchased via a compulsory sale, with local media naming Hysan as the likely acquirer.
While the applications for the 3 compulsory sales were made by different entities, local reports back then highlighted that the registered directors of the companies all include Koo Ching Fan and Lo Tai On, whose names match the directors of Hysan’s units for the fiscal year that ended 31 December 2019 and in the continuing period up to 20 February 2020.
The same group of applicants was also said to be buying adjacent properties at 7 to 9 Sharp Street East, in addition 14 and 18 Matheson Street.
Should Hysan obtain approval for full ownership and redevelopment rights for all seven sites, the commercial property landlord would be poised to construct another office and retail development in the vicinity, just a stroll from the Causeway Bay MTR station and the company’s Leighton Centre commercial complex along 77 Leighton Road.
“A composite retail and office building or Ginza-type building would be optimal (for the area),” said CHFT’s Leung. He estimated that the overall estimated value of the new commercial development could reach up to HK$7.5 billion when it’s completed.
“In comparison to the site at Caroline Hill Road, which sold for HK$18,374 psf to Hysan and Chinachem Group in May 2021, we believe the 7 consolidated sites could fetch between HK$17,000 psf and HK$18,000 psf in terms of accommodation value,” he added.
